When renewable raw materials such as palm oil and palm kernel oil are used, the main focus is on economic, environmental and social impacts along the entire supply chain – from field to shelf. Small farms produce around 40 percent of the world’s palm and palm kernel oil.
An important question for the oil producing countries is how to increase the yields from the land already under cultivation. This is why Henkel and BASF are collaborating with the development organization Solidaridad to support a project in Indonesia and advocate for smallholders and local initiatives.
Trainings for around 5,500 farmers
Sustainable farming methods, efficient production and high occupational health and safety standards are some of the most important conditions for certified palm oil production. Smallholders can learn how to fulfill these requirements locally in dedicated training programs. Since 2015, Henkel has been supporting the 5-year-project in the Indonesian province of West Kalimantan. Earlier this year, BASF joined the effort as an additional industrial partner. The smallholder program is implemented by Solidaridad in cooperation with its partners Good Return and Credit Union Keling Kumang (CUKK). The Australian non-governmental organization Good Return coaches and supports the teachers who carry out the trainings on the ground and who will continue the farmer support program after the project ends. The teachers are employees of CUKK, the second largest local credit organization in Indonesia.
Through the project, Solidaridad and its partners want to establish sustainable supply chains for palm and palm kernel oil that both effectively improve smallholders’ living conditions and are eligible for certification according to the criteria of the Roundtable on Sustainable Palm Oil (RSPO). Of the around 5,500 farmers that will be reached by the project, 1,600 will learn about the different aspects of good agricultural practice (GAP) in direct trainings that include measures for sustainable farming as well as for increasing crop yields. Furthermore, around 3,900 smallholders will be reached not only through a multiplier effect, but also via farmer field days and regular text messages on their mobile phones. The project spans an area of roughly 16,000 hectares.
Common commitment to a sustainable palm oil industry
“We want to change the market to develop a sustainable palm oil industry. To do so, we also need solutions and projects that allow small farms to increase productivity on their plantations – and we are making an important contribution to that by supporting local partners and initiatives,” explained Thomas Müller-Kirschbaum, Corporate Senior Vice President in the Laundry & Home Care business unit and Deputy Chairman of Henkel’s Sustainability Council. “With BASF supporting this smallholder project as an additional industrial partner, we’re sending the signal that we are joining forces to make the palm oil market more sustainable.”
“BASF is one of the largest global manufacturers of ingredients for the cosmetics industry as well as the home care industry and one of the links in the palm oil supply chain from smallholders to end consumers. We believe that we can only find solutions for sustainable, certified palm oil products by working together to preserve the forests and improve the living conditions of the people in the farming areas,” said Jan-Peter Sander, Senior Vice President at BASF Personal Care Europe. “That’s why we are collaborating intensively with our customers and suppliers, and also want to involve more smallholders in the dialog. The project in West Kalimantan is an important step in this direction.”
Higher yields and increased income for smallholders
The productivity of small farms in the palm oil industry is estimated to be 40 percent lower than the average when compared with larger companies. Measures ranging from farmer trainings to sustainable farming methods are expected to increase palm fruit yields and increase smallholders’ revenue. “We are delighted that Henkel and BASF are supporting this project in West Kalimantan,” said Marieke Leegwater, program manager palm oil at Solidaridad. “We think that it is of great interest that companies using palm oil products take responsibility beyond just buying sustainable palm oil, and contribute to investing in more sustainable and inclusive palm oil supply chains on the ground. This project certainly contributes to building such inclusive and sustainable chains, as it is expected to make a significant contribution to improve the livelihoods of independent oil palm farmers in the province of West Kalimantan, one of the poorest regions in Indonesia.”
World Economic Forum Plans 2022 Annual Meeting in Davos-Klosters
The World Economic Forum plans to convene the world’s foremost leaders for the Annual Meeting 2022 in Davos-Klosters, Switzerland. Taking place in person from 17-21 January, the Annual Meeting 2022 will be the first global leadership event to set the agenda for a sustainable recovery.
The pandemic has exacerbated fractures across society. It is a critical year for leaders to come together and shape necessary partnerships and policies. The meeting will bring together forward-thinking leaders to drive multistakeholder collaboration and address the world’s most pressing economic, political and societal challenges. Further details will be announced in due course.
The wellbeing of our participants, staff, service providers and hosts is a priority. Therefore, the World Economic Forum is working closely with the Swiss authorities, as well as with experts, national and international health organizations to put in place measures for the Annual Meeting 2022 that are appropriate and adapted to the context.
Klaus Schwab, Founder and Executive Chairman, World Economic Forum said “The pandemic has brought far-reaching changes. In a world full of uncertainty and tension, personal dialogue is more important than ever. Leaders have an obligation to work together and rebuild trust, increase global cooperation and work towards sustainable, bold solutions.”
Progressing cooperation on tackling climate change, building a better future for work, accelerating stakeholder capitalism, and harnessing the technologies of the Fourth Industrial Revolution will be important topics on the agenda.
Ahead of the Annual Meeting 2022, the Forum will host the fifth Sustainable Development Impact Summit to take place virtually from 20 to 23 September 2021 in the context of the United Nations General Assembly. The summit will convene under the theme Shaping an Equitable, Inclusive and Sustainable Recovery. It will welcome almost leaders from government, business and civil society who will work together to drive action and build momentum for a more sustainable and inclusive future.
Spain’s PM Speaks with Global CEOs on Strategic Priorities in Post-Pandemic Era
The World Economic Forum today hosted a “Country Strategy Dialogue on Spain with Prime Minister Pedro Sánchez” for its partners, chaired by Børge Brende, President of the Forum. The session gave CEOs from around the world an opportunity to hear directly from Sánchez on the factors behind Spain’s remarkable resilience to the economic shocks of the pandemic and its post-COVID-19 recovery strategy.
In the virtual session, Sánchez explained his government’s policy priorities and answered questions from CEOs on promoting innovation, a digital economy, a green transition and social justice in Spain, and on improving the enabling environment for long-term investors.
“After deploying unprecedented economic, financial and social measures to protect our economies, Spain is experiencing strong recovery. We want to build the economy of the future, and to do it in an inclusive way, leaving no one behind. We want to attract top talent and quality, innovation-centric investments. In summary, we want to transform the Spanish economy and we want to do it together with the private sector,” he said.
“The world economy is again growing. Spain is on track to be one of the fastest-growing economies among G20 countries. With Spain being among the key stakeholders in the European Union recovery fund, Prime Minister Sánchez and his government have provided important leadership on how to use the current momentum for a truly transformative agenda, for Spain, but also for Europe.” said Brende.
More than 80 partners of the World Economic Forum from around the world participated in the virtual session.
The Indigenous peoples of the North in Russia have got extra support
The largest metal producer, Norilsk Nickel, has decided to provide additional funding to the indigenous people of the Russian Arctic – living on the Taimyr Peninsula, the company said in a press release.
This is the second tranche of the company allocated to the indigenous peoples living in the north of Russia this year. Earlier it was reported that Norilsk Nickel allocated 2 billion Russian rubles (25.9 million US dollars) for various humanitarian needs of the indigenous peoples of the Russian North – the Taimyr Peninsula.
“Norilsk Nickel’s response to the needs of indigenous peoples is a confirmation of the company’s flexibility and systematic work with local communities. Our agreement is a demonstration of the desire for sustainable development of the peoples of Taimyr. We constantly monitor the needs of specific communities and, in contact with the company, change the parameters of individual clauses of our agreements. Moreover, most of the changes are an increase in the number of events with an increase in funding for the most important support programs,” said Grigory Dyukarev, Chairman of the Association of the Indigenous Peoples of the Taimyr Peninsula, Krasnoyarsk Territory.
The company clarifies that an additional tranche of financing will be directed to the production of special literature, support for the publication of newspapers in the languages of the indigenous peoples of the North, preparation of teaching materials for language learning and some other activities.
“Nornickel strives to fully comply with the UN sustainable development goals. The company’s actions towards indigenous peoples are not a tribute to fashion, not an attempt to appease, but an honest, transparent and conscious position, the course of which is the development of corporate ethnoculture. We don’t just fund critical indigenous livelihoods and management programs, our goal is to build partnerships with all stakeholders: associations and specific communities. We always strive to respond to requests for adjustments to our support programs based on an urgent agenda that indigenous peoples themselves understand better than we do. Especially when it comes to supporting indigenous languages, promoting and protecting them. After all, language is the main vehicle for preserving the historical memory of generations, “commented Andrey Grachev, Vice President for Federal and Regional Programmes at Nornickel.
The agreement was signed at a round-table discussion on the results of an ethnological expert review to study the drivers of indigenous peoples sustainable development on Taimyr. In the period from December 2020 to July 2021, large-scale scientific studies of changes in the original habitat of the indigenous peoples of the North living in the western part of the Taimyr Dolgan-Nenets municipal district of the Krasnoyarsk Territory and the socio-cultural situation. The scientific organisations that participated in the review included Miklukho-Maklai Institute of Ethnology and Anthropology, Peter the Great Museum of Anthropology and Ethnography (the Kunstkamera), The Expert Center Project Office for Arctic Development and others. The representatives of the indigenous communities praised Nornickel’s openness and determination to remedy the damaging effects of the May 2020 incident on their habitats and livelihood, emphasizing the relevance and significance of the review not only for Taimyr, but also for many other Russian regions.
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